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किलिक निक्सॉन

बीएसई: 501316  |  NSE: N.A  |  ISIN: INE982A01011  |  Paints & Varnishes

खोजें किलिक निक्सॉन कनेक्शन Mar 12
लेखा परीक्षकों की रिपोर्ट वर्षांत : Mar '13
I.  Report on the Financial Statements
 
 We have audited the accompanying financial statements of Killick Nixon
 Limited. , which comprise the Balance Sheet as at 31st March , 2013,
 the Statement of Profit and Loss and Cash Flow Statement for the year
 ended, at 31st March , 2013 and a summary of the significant accounting
 policies and other explanatory information.`
 
 II.  Management''s Responsibility for the Financial Statements
 
 The Company''s Management is responsible for the preparation of these
 financial statements that give a true and fair view of the financial
 position, financial performance of the Company in accordance with the
 Accounting Standards referred to in sub-section (3C) of section 211 of
 the Companies Act, 1956 (''the Act''). This responsibility includes the
 design, implementation and maintenance of internal control relevant to
 the preparation and presentation of the financial statements that give
 a true and fair view and are free from material misstatement, whether
 due to fraud or error.
 
 III.  Auditors'' Responsibility
 
 Our responsibility is to express an opinion on these financial
 statements based on our audit.  We conducted our audit in accordance
 with the Standards on Auditing issued by the Institute of Chartered
 Accountants of India. Those Standards require that we comply with the
 ethical requirements and plan and perform the audit to obtain
 reasonable assurance about whether the financial statements are free
 from material misstatement.
 
 An audit involves performing procedures to obtain audit evidence about
 the amounts and the disclosures in the financial statements. The
 procedures selected depend on the auditor''s judgment, including the
 assessment of the risks of material misstatement of the financial
 statements, whether due to fraud or error. In making those risk
 assessments, the auditor considers the internal control relevant to the
 Company''s preparation and fair presentation of the financial statements
 in order to design audit procedures that are appropriate in the
 circumstances. An audit also includes evaluating the appropriateness of
 accounting policies used and the reasonableness of the accounting
 estimates made by the Management, as well as evaluating the overall
 presentation of the financial statements.
 
 We believe that the audit evidence we have obtained is sufficient and
 appropriate to provide a basis for our audit opinion.
 
 IV.  Opinion
 
 In our opinion and to the best of our information and according to the
 explanations given to us, the financial statements give the information
 required by the Act in the manner so required and subject to our
 reservations expressed in para V(2)(d) and V(2)(f) below, give a true
 and fair view in conformity with the accounting principles generally
 accepted in India:
 
 a.  In the case of the Balance Sheet, of the state of the affairs of
 the Company as at 31st March 2013.
 
 b.  In the case of the Profit and Loss Account, of the Profit for the
 year ended on that date; and
 
 c.  In the case of the Cash Flow Statement, of the cash flow for the
 year ended on that date
 
 V.  Report on Other Legal and Regulatory Requirements
 
 1.  As required by the Companies (Auditor''s Report) Order, 2003(''the
 Order'') issued by the Central Government of India in terms of
 sub-section (4A) of section 227 of the Act, we give in the Annexure a
 statement on the matters specified in paragraphs 4 and 5 of the Order.
 
 2.  As required by Section 227(3) of the Act, we report that:
 
 (a) We have obtained all the information and explanations which to the
 best of our knowledge and belief were necessary for the purposes of our
 audit.
 
 (b) In our opinion, proper books of account as required by law have
 been kept by the Company so far as it appears from our examination of
 those books.
 
 (c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
 Statement dealt with by this Report are in agreement with the books of
 account.
 
 (d) In our opinion, the Balance Sheet, Statement of Profit and Loss
 comply with the Accounting Standards referred to in sub-section (3C) of
 section 211 of the Act except for the following 
 
 1.  Adequate Provision for permanent diminution in the value of
 Investments has not been made as required under Accounting Standard No.
 13 - ''Accounting for Investments'' issued by The Institute of Chartered
 Accountants of India (see para V((2)(f)(i)(b) below)
 
 2.  Provision for deferred Tax asset/liability has not been made
 according to the requirement of Accounting Standard No. 22 -
 ''Accounting for Taxes on Income'' issued by The Institute of Chartered
 Accountants of India. (See para V(2)(f)(i)(e) below);
 
 (e) On the basis of the written representations received from the
 directors as on 31st March, 2013 taken on record by the Board of
 Directors, none of the directors is disqualified as on 31st March, 2013
 from being appointed as a director in terms of clause (g) of
 sub-section (1) of section 274 of the Act.
 
 (f) We invite attention to the followings;
 
 (i) The company has given inter-corporate loans and advances and
 guarantees and made investments in other corporate bodies in excess of
 limits laid down under section 372A of the Companies Act, 1956 without
 proper compliance of the provisions of the Section.
 
 No provision has been made in the accounts for:
 
 a.  Disputed sales tax and income tax matters aggregating to Rs.
 854,137,008/- (refer to Note No. 2 (I) (b) and 2 (I) (c) of the Notes
 to Accounts).
 
 b.  There is a diminution in the value of investments made in Six
 subsidiaries and seven other companies, however the company has made a
 provision for diminution in value of investments aggregating to Rs.
 35,741,849/- (previous year Rs.  35,741,849/-) only in respect of three
 subsidiary companies. Whereas as per the latest available Balance
 Sheets of the other subsidiaries and companies show huge negative net
 worth due to accumulated losses [refer to Note No24(II)]. In our
 opinion there is a permanent diminution in the value of the investments
 of other companies for which provision should have been made in
 accordance with the Accounting Policy of the Company and also
 Accounting Standard 13 issued by The Institute of Chartered Accountants
 of India.
 
 c.  During the Year 06-07 the Custodian had submitted Final Accounts
 detailing the funds raised through disposal of properties and direct
 remittance through bank in accordance with the decree passed by the
 court. The account also showed the payment made to notified parties.
 The payment includes principal and interest thereon at the rate
 prescribed by the court. In the final analysis the custodian made a
 claim of Rs.  1,73,50,963/- on the company. The company has not
 admitted the claim.  The company had made independent calculation
 amounts payable to the notified parties. As per the calculations
 certified by Chartered Accountant the company has made excess payment
 and has filed a counter claim to the custodian.  Further during the
 year 2011-12 company has made additional payment of Rs.78,13,206.00 to
 the custodian totaling to Rs. 3,3513,479.00.  However the company''s
 claim for the refund of excess money paid as principal debtor and
 guarantor was disallowed by the Hon''ble Supreme Court.[refer to Note
 No.2 (VII)].
 
 d.  The interest including Penal interest in respect of debts of Global
 Trust Bank, aggregating to Rs. 13,37,51,132/- (previous year Rs.
 12,83,05,584/-).
 
 e.  The company has not provided for deferred tax during the year.
 
 f.  The Company has not provided for Fringe Benefit Tax (FBT) payable
 for the year 2008-09 amounting to Rs. 152,455/- . The interest thereon
 amounting to Rs.  1,61,651/- has also not been provided.
 
 g.  The Company has not made provision in the accounts in respect of
 interest amounting to Rs.53,145,864/- (Previous year Rs.53,145,864) on
 loans taken from Companies and others.
 
 (ii) We are unable to express our opinion on the realisability or
 otherwise of Rs.36,46,15,772/- (previous year Rs 36,90,87,482/-)
 included in advance and loans to others and advances and loans to
 subsidiary companies.
 
 (iii) The Company had acquired during the year 2007-08 certain shares
 of its 13 associate companies (all unlisted) (currently holding
 investments in seven associate companies) against their dues to the
 Company arising out of payments made to the Custodian on the account of
 the associate companies'' debts through the sale of assets of the
 Company. The value agreed by the Company to acquire the shares is much
 higher than the book value of the shares of the associate companies. We
 have been informed by the Company that the associate companies hold
 real estate assets which are not taken at their current value in their
 balance sheets and hence the value paid by the Company to acquire those
 shares appear higher. We have also been informed that the associates
 are also planning restructuring and strategic alliances which will
 bring the actual value of their shares on record. However no
 substantive evidence has been brought to our notice and in its absence,
 we are unable to comment on the fair market value of the shares
 acquired.
 
 (iv) The confirmation in respect of balance confirmation in current
 accounts amounting to Rs.15,97,030 and Fixed deposit amounting to
 Rs.2,74,865/- is not produced for our verification. Hence the finacial
 impact of the same, if any could not be verified.
 
 (v) Without considering the items in Para V(2)(d)(1), V(2)(f)(i)(b),
 V(2)(f)(i)(e) ,V(2)(f)(ii) and V (2)(f)(iv) above, the effect of which
 could not be determined, had our observations in para V(2)(f)(i)(a),
 V(2)(f)(i)(c), V(2)(f)(i)(d), V(2)(f)(i)(f) and V(2)(f)(i)(g) above
 been considered, the loss for the year would have been Rs.
 1,07,33,21,758/- (as against the reported profit of Rs.13,87,376/- ).
 Further the debit balance in Surplus Account under Reserves and Surplus
 at the end of the year would have been Rs. 1,52,54,53,745/- (as against
 the reported debit balance figure of Rs.  45,07,44,611/-), short term
 provisions would have been Rs. 1,07,68,93,672/- (previous year Rs.
 94,26,93,445/-) as against the reported figure of Rs.21,84,538 /-
 (previous year Rs. 17,53,738/-)
 
 (vi) Despite the accumulated loss, and diminution in value of assets,
 investments, Loans & Advances, various litigations before the Hon''ble
 Special Court and Debt Recovery Tribunal, overdue liabilities and
 taking into consideration the discontinuation of distribution agreement
 w.e.f. 1/5/2002 in respect of its paint products, the agreement for
 reimbursement of expenses having expired w.e.f.  31.10.2002, the
 accounts of the company have been prepared on a going concern basis.
 Further the company''s ability to continue as a going concern would
 depend upon the appropriate steps taken by the management.
 
 As required by the Companies (Auditor''s Report) Order, 2003 on the
 basis of such checks as we considered appropriate, we state that:
 
 i. a) The company has maintained proper records showing full
 particulars including quantitative details and situation of its fixed
 assets upto the financial year 1993-94. From the financial year
 1994-95, movements in these assets and additions thereto have not been
 entered in these records and we are informed that the same will be
 updated.
 
 b) We have been informed that the management, during the year,
 physically verified most of the fixed assets. We have also been
 informed that no material discrepancies were noticed on such
 verification. However, in our opinion, and in view of the comments in
 para (a) above, we are unable to comment as to whether the physical
 verification was reasonable.
 
 c) We are informed that during the year, the company has not disposed
 of any of its fixed assets.
 
 ii. a) The Company does not hold any inventory during the above
 mentioned financial year.
 
 b) In view of our comments in Para (ii) (a) above clause (ii) (b) and
 (ii) (c) of the said order are not applicable to the company.
 
 a) iii a) During the year the company has granted secured or unsecured
 loans to the companies, firms and other related parties covered in the
 register maintained under section 301 of the Act amounting to
 Rs.20,58,872/- (P.Y. Rs.34,41,174/-)
 
 b)
 
 b) The loans granted to the companies, firms or other related parties
 covered in the register maintained under section 301 of the Act are
 interest free, and in our opinion terms and conditions of such loan are
 not prima facie prejudicial to the interest of the company. But
 attention is invited to para V(2)(f)(ii) of our report on even date.
 
 d) As there is no contract in place we are unable to comment on the
 repayment of principal and interest. Attention is invited to para
 V(2)(f)(ii) of our report on even date.
 
 e) The company has taken unsecured loans from companies, firms and
 other related parties covered in the register maintained under section
 301 amounting to Rs.4,31,414/-( P.Y.  NIL).
 
 f) In our opinion, since loan taken from companies, firms and other
 related parties are interest free, terms and condition of such loan are
 prima facie not prejudicial to the interest of the company.
 
 g) The repayment of principal on loans taken by the company from
 companies, firms and other related parties is not regular.  iv. In our
 opinion and according to the information and explanations given to us,
 there are adequate internal control procedures commensurate with the
 size of the Company and nature of its business with regard to purchase
 of inventory, fixed assets and for the sale of goods and job work
 receipts. During the course of our audit we have not come across any
 continuing failure to correct major weaknesses in internal controls.
 
 v.  According to the information, explanations and representations
 given to us by the management the particulars of the contract or
 arrangements referred to in section 301 of the Act have been entered in
 the register required to be maintained under that section.
 
 vi. According to the information, explanations and representations
 given to us by the management the transactions made in pursuance of
 such contracts or arrangements have been made at prices which are
 reasonable having regard to the prevailing market prices at the
 relevant time.
 
 vii. Based on our audit procedure and as explained by the management
 during the year company has not accepted any deposit from the public
 and there are no deposits outstanding at the balance sheet date. Hence
 the directives issued by Reserve Bank of India and the provisions of
 section 58A are not applicable to the company.
 
 Since the company has not accepted deposit from small depositors as
 defined under section 58 AA, defaults in repayment of deposits,
 compliance of section 58 AA or obtaining any order from the National
 Company Law Tribunal does not arise.
 
 viii.  The Company does not have an Internal Audit System.
 
 ix. The Central Government has not prescribed maintenance of cost
 records under Section 209(1)(d) of the Companies Act, 1956, for any of
 the products manufactured by the Company.
 
 x.  According to the information and explanations given to us, dues
 relating to sales tax/customs duty/wealth tax excise duty/cess that
 have not been deposited on account of disputes with the related
 authorities have been shown in the table hereunder.
 
 x.  The Company has not incurred cash loss during the current year and
 bit it has incurred cash losses in the immediately preceding financial
 year. The accumulated losses exceed the net worth of the company. 
 
 xi In our opinion and according to the information and explanations
 given to us, the Company has defaulted in repayment of dues to Banks,
 Financial Institutions and the amounts overdue are as shown in the
 table hereunder.
 
 Note: The amounts mentioned are inclusive of interest wherever it has
 been duly accounted and excludes accrued interest not provided in the
 accounts and the said amounts are overdue for period of more than six
 months.
 
 The Company has not obtained any borrowings by way of debentures.
 
 xii. According to the information and explanation given to us and based
 on our examination of documents and records, the Company has not
 granted loans and advances on the basis of security by way of pledge of
 shares, debentures and other securities.
 
 xiii. The Company is not a chit fund or nidhi / mutual benefit fund /
 society. Therefore the provisions of clause 4(xiii) of the order are
 not applicable to the company.
 
 xiv. According to the information and explanations given to us the
 Company is not dealing or trading in shares, securities, debentures and
 other investments. Accordingly, the provisions of clause 4 (xiv) of the
 Order are not applicable to the company.
 
 xv. According to the information and explanations given to us and the
 representations made by the Management, the Company has given
 guarantees to Banks or financial Institutions for loans taken by
 another company in earlier years. In our opinion, the terms and
 conditions of these continuing guarantees are, at present, prima facie,
 prejudicial to the interest of the company.
 
 xvi. During the year under audit company has not taken any term loan.
 According to information and explanation given to us the term loans
 taken earlier have been applied for the purpose for which they were
 obtained.
 
 xvii. Based on the information and explanations given to us and on an
 overall examination of the balance sheet of the company in our opinion,
 there are no funds raised on short term basis which have been used for
 long term investment.
 
 xviii. According to the information and explanations given to us, no
 preferential allotment of shares has been made during the year by the
 Company to parties and companies covered in the Register maintained
 under Section 301 of the Companies Act, 1956.
 
 xix.  According to the information and explanations given to us, no
 debentures have been issued by the Company during the year.  xx.  Based
 on our examination of books and records of the Company, no public issue
 was made by the Company during the year.  xxi.  During the course of
 our examination of the books of account carried out in accordance with
 the generally accepted auditing practices in India, we have not come
 across any instance of fraud on or by the Company nor have we been
 informed by the management of any such instance being noticed or
 reported during the year.
 
                                    For NBS & Co.
 
                                    Chartered Accountants 
 
                                    Sd/-
 
                                    Devdas Bhat
 
                                    Partner
 
                                    M. No. 48094
 
 Place: Mumbai
 
 Dated: 2nd September, 2013
स्रोत: रेलीगरे टेचनोवा

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